*RARE* Turnkey SFR 2% rule in Indianapolis!

[Ryan Boyd]

Investment Info:

Single-family residence buy & hold investment in Indianapolis.

Purchase price: $43,675
Cash invested: $2,500

Currently, I cannot qualify for a home due to being a realtor (Banks need to see 2 years of tax returns to lend to me... One year to go!) I didn't let that stop me from landing a good deal. My parents are rental property investors and after sharing/convincing them this was an incredible deal we partnered together (even though they say to stay away from family). We are currently renting the home for $920/mo to a young couple and have had little to no issues... If only they were all this easy!

What made you interested in investing in this type of deal?

Many of the homes I have found for myself or other investors need a major amount of work to make the number look great. This was a unicorn that for some reason nobody saw or was interested in. I took a slight risk, and it paid off greatly!

How did you find this deal and how did you negotiate it?

By the time I had gotten approved to put an offer on the home it went pending. I told the listing agent to contact me if it fell through and fortunately, it did!

How did you finance this deal?

Through Centier Bank with Chris France. Conventional 20% down loan and it qualified for a neighborhood loan. Our interest rate was an amazing 4.25%

How did you add value to the deal?

This home honestly should've sold for 70-85k. The listing agent needed money quick!

[Jay Hinrichs]

Originally posted by @Joe Splitrock:

@Ryan Boyd I thought that 2% was fairly common in Indy? I have read a fair amount about Morris and other turnkey companies that are churning these types of $50K properties there. Is it that not the market anymore? Are prices and rents are escalating in Indy or is it the specific neighborhood that is better? Maybe there is hope for all the out of state investors who worked with Morris... All I know about the market is what I read on BP, so forgive my ignorance, genuinely asking to learn something.

Looks like a good investment, congratulations!

 Joe Indy is just like any other big city market in the mid west.. you have the tough areas were there are a lot of board ups and such were houses can be bought for 5k rehabbed and are worth what Ryan paid for his..  and then there are neighborhoods at every price point above that.. and there areas that are transforming like  Fountain square  old 100 year old homes but if you pop top them or build new infill they will sell for 300 to 450k.. I have a half dozen of those going right now. exact same houses different location that has turned HOT for millennial who is with in bike riding distance of downtown or Lilly